Here’s Why Neurometrix Inc Rose as Much as 60% Today
Shares of Neurometrix Inc (NASDAQ:NURO) rocketed more than 60% higher at one point Wednesday morning after the healthcare company announced a new collaboration with GlaxoSmithKline plc (ADR) (NYSE:GSK), involving Quell, the company’s over-the-counter, 100% drug free chronic pain relief wearable. Specifically, GSK Consumer Healthcare acquires exclusive ownership of Quell technology for markets outside the U.S.
Neurometrix will receive a payment of $5 million for the assets relating to Quell technology for markets outside the U.S and up to $21.5 million, upon the achievement of certain development and commercialization milestones. Investors will need to wait to see more precise details, but for a penny stock such as Neurometrix, this is pretty amazing no matter the exact dollar amount.
“We are excited by the opportunity to partner with GSK Consumer Healthcare to expand access to Quell technology among chronic pain sufferers around the world. GSK Consumer Healthcare is a world leader in over-the-counter pain relief, with several top global brands,” said Shai N. Gozani, M.D., Ph.D., President and Chief Executive Officer of NeuroMetrix. “We will continue to focus on building Quell into a leading U.S. consumer healthcare brand while collaborating with GSK on Quell product development and supporting their international commercialization efforts. We believe that GSK is our ideal Quell partner as we share a deep commitment to science-based therapies and to the health and quality of life of our customers.
On the ratings front, H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on NURO, with a price target of $3.00, in a report issued on October 20. The current price target represents a potential upside of 39% from where the stock is currently trading. According to TipRanks.com, Selvaraju has a yearly average loss of 9.9%, a 34% success rate, and is ranked #4707 out of 4748 analysts.
NeuroMetrix, Inc. engages in the research, development and trade of medical equipment and consumables. It offers wearable pain reliefs patch, advance ncs system, dpncheck and pain management device to treat chronic pain, nerve diseases and sleep disorder.